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Three Arrows Capital (3AC) has been ordered liquidated by a British Virgin Islands Court, deepening the crypto hedge fund's predicament.
According to Sky News, a British Virgin Islands Court has ordered the liquidation of Three Arrows Capital (3AC), plunging the crypto hedge fund into even deeper trouble.
Teneo Reorganization has been tasked with handling 3AC's restructuring, according to the article.
Earlier this week, Voyager Digital sent 3AC with a default notice for failing to repay a debt valued around $660 million, 15,250 Bitcoin, and $350 million in USDC.
Although 3AC has yet to respond to the verdict, many feel it is a watershed moment for the floundering cryptocurrency sector. The financial consequences of the liquidation for 3AC creditors remain unknown.
The decision comes nearly two months after 3AC's first smell of problems with the fall of the LUNA and UST tokens.
According to rumors, the business apparently bought a substantial UST holding in Anchor without alerting investors.
Kyle Davies, co-founder and Chairman of 3AC, stated that the company is dedicated to resolving the situation. He also stated that the company will investigate options like as being rescued by another company or selling part of its assets.
However, with the impending required liquidation, it is uncertain how 3AC will proceed.
The collapse of 3AC might have an impact on the crypto sector.
Because of its numerous industry creditors, including Celsius, BitMex, and BlockFi, 3AC's liquidation is bound to have an impact on the crypto ecosystem.
Furthermore, its insolvency may have an impact on future cryptocurrency laws.
Senators Cynthia Lummis and Kirsten Gillibrand's newly proposed crypto bill is now gathering feedback from crypto stakeholders.
Aside from that, Christine Lagarde, the head of the European Central Bank (ECB), has asked authorities to enact new regulations that govern crypto activities like as staking and lending.
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